NAIROBI, Kenya — Businesses that experience licensing delays from county governments for more than 28 days will soon be allowed to operate automatically under new regulations aimed at easing trade procedures and cutting red tape.
The proposed County Licensing (Uniform Procedures) Regulations, 2025, seek to simplify and harmonise how counties issue business permits, merging several approvals into a single licence and digitising the application process.
The reforms, spearheaded by the Ministry of Investment, Trade and Industry, are part of a broader effort to improve Kenya’s investment climate and make counties more business-friendly.
Investment Promotion Principal Secretary Abubakar Hassan Abubakar told the National Assembly Committee on Implementation that the new rules will address long-standing inefficiencies and inconsistencies in the current system.
“Some companies take up to two years to get a single licence. These licences are not uniform and, in many cases, not automatic,” said Mr Abubakar. “We are putting in place a system where, if a county government fails to respond within 28 days, the licence will be automatically approved.”
Under the draft regulations, county governments will also be required to coordinate through the Council of Governors (CoG) to streamline inter-county licensing and eliminate unnecessary barriers to trade.
Currently, traders moving goods across counties must obtain fresh clearances at each stop — a process many describe as costly and inefficient.
“The goal is to make both national and county business environments more competitive and predictable,” the PS added.
Beyond licensing, the ministry is developing county-specific industrial policies, investment facilitation units, and a County Competitiveness Index to track economic performance and guide targeted development.
However, the proposed rules have sparked debate in Parliament over potential conflicts between national and county powers.
Kathiani MP Robert Mbui questioned whether the reforms might undermine county autonomy, while Committee Chair Samuel Chepkonga urged the ministry to ensure counties retain their role in business regulation.
Abubakar assured lawmakers that the reforms will promote uniformity without eroding devolved authority.
“If every county makes its own licensing rules, businesses will face 47 different regimes — which is unsustainable for a unified market,” he said.
If approved, the new system will give traders a more predictable and efficient way to start and operate businesses across Kenya, boosting investor confidence and supporting county-level growth.
